Now fill this next layer with a color.
I want this shadow to look cutout or inverted.
So click on the Invert Selection icon. Now the marquee is around the whole
layout and the text as shown here.
Set the Drop shadow as shown here. Adjust for digital sized layouts.
Note how the dark shadow is on the inside of the selection now? It gives
a cutout effect.
To get the total cutout effect you need to Invert the selection once more.
Give this selection another shadow but this time in white. as shown. This completes the cutout look.
BUT there is more!